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Alitalia joins Air France-KLM Group and Delta in trans-Atlantic JV

6-Jul-2010 8:18 AM

Alitalia has joined (05-Jul-2010) the Air France-KLM Group and Delta Air Lines as a member of the trans-Atlantic JV. Details include:

  • Trans-Atlantic JV: Launched in Apr-2009, the multi-party agreement created a single, coordinated network across the Atlantic, allowing member airlines to share revenues and costs on trans-Atlantic routes;
  • Geographical scope: The JV's geographic scope includes all flights between North America and Europe, between Amsterdam and India and between North America and Tahiti;
  • Network: Passengers will have access to the largest trans-Atlantic network – 250 flights and approximately 55,000 seats per day – now including 20 daily trans-Atlantic services to five US destinations from Rome and Milan Malpensa airports. Rome joins Amsterdam, Atlanta, Detroit, Minneapolis, New York-JFK and Paris-CDG as the core hubs with additional trans-Atlantic service from Cincinnati, Milan Malpensa, Memphis and Salt Lake City;
  • Capacity: With the addition of Alitalia, the JV represents approximately 26% of total trans-Atlantic capacity, with annual revenues estimated at more than USD10 billion;
  • Governance: Governance will be equally shared between Alitalia, Air France-KLM Group and Delta. Alitalia representatives will immediately join the JV's 11 working groups responsible for implementing and managing the agreement in the areas of network, revenue management, sales, product, frequent flyer, advertising/brand, cargo, operations, information technology, communications and finance. Alitalia will be included in all JV initiatives, including joint sales contracts, which launched in Jan-2009;
  • Dates: Alitalia's addition to the joint venture is effective 01-Apr-2010 as part of a long-term agreement effective until at least 31-Mar-2022. [more]

Delta Air Lines: "Delta's partnership with Europe's leading airlines has been a great success and has enabled us to add new destinations and convenience for customers across the United States and Europe. The addition of Alitalia to our joint venture will further bolster our ability to optimise resources, protect revenues and provide more benefits for our employees and shareholders," Richard Anderson, CEO. Source: Company Statement.

Air France-KLM: "The trans-Atlantic joint venture has been strengthened by the arrival of Alitalia, which adds the Italian market, the third biggest in Europe, to the JV and also gives it access to the Rome-Fiumicino hub. The Italian airline, a SkyTeam member, is a strategic partner of Air France-KLM with which it already has joint venture agreements on its Italy-France and Italy-Netherlands routes. It is therefore natural that this successful partnership should continue with Alitalia's participation in the trans-Atlantic JV," Pierre-Henri Gourgeon, CEO. Source: Company Statement.

Alitalia: "Today marks an important milestone in Alitalia's development plan. Trans-Atlantic traffic is the most strategic and competitive marketplace. We are proud to be partnering with the world's leading airlines in a joint venture which the whole industry looks at as the benchmark. Such an achievement highlights the valuable results obtained so far by Alitalia, and further opens up opportunities for our industrial and commercial growth," Rocco Sabelli, CEO. Source: Company Statement, 05-Jul-2010.